Home Buying in Covington>Question Details

blaque_rose40, Home Buyer in Covington, GA

Credit Score For Purchasing A Home

Asked by blaque_rose40, Covington, GA Thu Aug 16, 2012

Credit score for purchasing a home
I would like to know what is the lowest credit score that you can have to purchase a house at 45,000.00 and how much of a down payment and how much would the monthly mortgage payment be in covington, georgia my only source of income is social security . Could someone please enlighten me on this subject ASAP looking forward to moving to Covington very soon thanking you kindly in advance

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Answers

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At Prospect Mortgage, we do not have a minimum loan amount, except for renovation mortgages. All Renovation Mortgages do require a $50K minimum loan amount. While other loan programs do not have a set minimum loan amount, all mortgages must pass the various Federal and State fee compliance tests for predatory lending. Generally, loan amounts under the lower $30K's will not pass those required tests.

The minimum down payment will be determined by the loan program and your qualifications as a borrower.

Only two 100% Financing programs are currently available. One of which is the VA loan program. VA financing is only available for eligible veterans. The second 100% options is USDA financing. USDA loans do have geographic restrictions to rural areas though.

For an FHA and FHA 203K mortgages, the minimum down payment is 3.5%. That down payment can be from the borrower’s own funds or a gift from a family member.

Conventional mortgages typically require at least 5% down for a primary residence. Any conventional mortgage with less than a 20% down payment will require monthly mortgage insurance.
0 votes Thank Flag Link Sat Aug 18, 2012
For an FHA mortgage, most lenders require a 640+ credit score for the last 3-4 years now. Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months.

With collection accounts, most of the damage is done when they are initially placed on your credit report. Some are now reporting you are late each month the debt goes unpaid. This continues to drag on many people’s credit scores each month until the debt is paid in full. Until you do that, your credit score has little chance of improving.

To build positive credit, you typically need to have 2-3 trade lines reporting for 12-24 months. There should be no late payments or other derogatory items reported in the last 12-24 months.

To get Pre-Qualified to purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference: http://www.rodneymason.com
0 votes Thank Flag Link Sat Aug 18, 2012
Look at the USDA home loan program. It is a great opportunity for low or fixed income families.
They have things like 100% financing low interest rates etc credit score of
620
Each case is unique but you can start by going to the USDA rural housing website and find your local office.
If you need any help or
When you are ready to look for homes contact me at (678)602-7083
0 votes Thank Flag Link Thu Aug 16, 2012
We recommend contacting your financial institution and get pre-qualified for a loan. Then contact a reputable realtor. Good Luck!
0 votes Thank Flag Link Thu Aug 16, 2012
Hi,

The lowest credit score is 640. You need to contact a Mortgage Broker that can explore all your options and explain the different programs that they have available to you.
Sincerely,
Maria
0 votes Thank Flag Link Thu Aug 16, 2012
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